Comment on the January 25 prediction: 1/2 CORRECT (Marathon raised prices to $3.29 last Monday night and some stations followed), 1/2 WRONG (Speedway did not follow).
Sunday, February 2, 2025, 10 AM: I did not have on my bingo card that Speedway would become a hero for gas prices in 2025, but here we are. Twice in January, Marathon initiated a spike to $3.29 in west Michigan, only to have Speedway shrug. Other retailers, experts in the game of follow-the-leader, have been confused. I saw one of the K&G’s match Marathon, while another didn’t. A few Shells were quick to follow Big Blue. Meanwhile, gas is typically under $3 a gallon at Big Red today, as if they’ve decided to start competing with low-price-leader Costco instead.
So, it has been Big Blue vs. Big Red. Is there some hidden political meaning to it all?
That brings us to the new tariffs. The ones applied to Canada have the potential to put upward pressure on gas prices. I think more likely in the short term is that the narrative that “tariffs will bring higher prices” will give retailers permission to raise prices, even if the tariffs themselves don’t have a big effect on wholesale costs. And not just gasoline.
I am going to fill up today because I have no idea what is going to happen this week. -EA